Top reasons for Deal lease extension

Main reasons to start your Deal lease extension today:

A Deal leasehold property depreciates with the years remaining on the lease.

With a long leasehold premises in Deal, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Deal with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has under 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is due.

Deal property with a lease extension is almost the same value as a freehold

Leasehold residencies in Deal with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not issue a mortgage with a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be deficient security.

Why use us for your lease extension in Deal?

Irrespective of whether you are a tenant or a landlord in Deal,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Deal valuers.

Deal Lease Extension Example Cases:

Archie, Deal, Kent

During the course of the last few months Archie, started to get near to the 80-year threshold with the lease on his first floor flat in Deal. Having purchased his property twenty years previously, the lease term was of minimal interest. Luckily, he recognised he needed to take steps soon on Extending the lease. Archie extended the lease just under the wire last August. Archie and the freeholder via the managing agents in the end settled on sum of £5,500 . If he had missed the deadline, the figure would have escalated by at least £975.

Deal case:

Dr Melissa Lee took over the lease of a purpose-built flat in Deal in January 2006. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical flats in Deal with an extended lease were valued about £260,200. The mid-range ground rent payable was £65 collected quarterly. The lease concluded on 26 April 2092. Taking into account 66 years as a residual term we approximated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.

Deal case:

In 2013 we were called by Mrs R Kelly who, having owned a ground floor flat in Deal in January 2005. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable residencies in Deal with an extended lease were worth £198,800. The mid-range ground rent payable was £55 billed quarterly. The lease elapsed on 23 November 2081. Taking into account 55 years unexpired we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of costs.